Authored by MLC intern, Satyam Sinha
Bipartisan legislation creating a new Michigan Innovation Fund was considered this week by the House Economic Development and Small Business Committee. First mentioned by Governor Whitmer during her State of the State address, the fund hopes to attract and invest in startups and young companies.
Key Points:
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- House Bills 5651-5653 were introduced by Representative Greg VanWoerkom (R-Norton Shores), Rep. Jason Hoskins (D-Southfield), and Rep. Alabas Farhat (D-Dearborn) last month.
- The three bills would amend the Michigan Trust Fund Act, the Michigan Early Stage Venture Investment Act (MESVIC), and create the Michigan Innovation Fund respectively.
- The Fund’s grants would be funded through money deposited from MESVIC into the 21st Century Jobs Trust Fund.
- The money would go to various funds and nonprofits that provide early-stage venture capital funding to startup companies.
- For the 2023-2024 fiscal year, 85% of the money deposited would provide grants to qualified ever green venture funds for investments into early-stage start-up companies engaged in competitive edge technology and 15% would go to qualified non-profits for qualified start-up support services.
- In the subsequent fiscal years, the split would be 40% for evergreen venture funds, 20% for start-up support services, and 40% would be deposited in the Jobs for Michigan Investment Fund for investment.
Next steps:
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- The legislation remains before the committee awaiting further consideration.
